Consult an Arizona bankruptcy lawyer if worried about your financial shortcomings dominate your life. If your mind is consumed with thoughts of: Where to get money to pay the delinquent bills pile? How are you going to pay for every day expenses? If this kind of worry swarm your mind non-stop, then it is time for you is a permanent solution and call your life.
An unexpected event in your life can knock down a domino effect of everything you’ve worked so hard to achieve. The instability of the economy breeds an environment where someone can lose his job. If you are going out of your job or leave for some reason it is very easy to get behind on your bills. If you are in an accident or are ill and can not work, not only do you get behind the bills, but you gather additional medical bills on top of your regular household and living expenses. Can
It feels as if you have no breathing space, but there are limits to protect you from your creditors.
Fortunately, our laws have since ancient Greek times, when you go to work off your debt even though physical work, if you could not pay had developed. An Arizona bankruptcy attorney can advise you your current financial situation, the options that area available. The two most common chapters of bankruptcy are 7 and 13 The bankruptcy lawyer will ask a means test on your individual situation. This means test to determine which chapter of bankruptcy you are eligible to file.
Chapter 7
If your aid test determines that you no additional money to your debts after their basic living expenses to pay, then you have to qualify in the rule for Chapter 7 bankruptcy.
Chapter 7 bankruptcy requires you to liquidate your assets, you must use to pay off creditors. There are allowances in the bankruptcy law is that you can keep your home base and vehicles involved. After the liquidation of the remaining unsecured debt is discharged. This means that you no longer owe your creditors, the debt has been discharged.
Chapter 13
If your aid test shows that you are the resources available to the creditors to pay after your basic living expenses are paid, then you have to qualify for Chapter 13 bankruptcy. Chapter 13 is different than liquidate in Chapter 7, because instead of discharging the debts and the court orders your debts. The reorganization is to help you get your debt under control and allow you to catch up. The courts work out a payment plan on your delinquent accounts. You must pay the monthly payments and maintain current payments on all your bills until the end of the term payment plan. The court generally directed payment plans that run for 12 to 36 months, depending on your individual situation.
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Most people that are filing bankruptcy usually have a large number of credit cards in addition to their other debts. In many cases, the interest from credit card debt is what pushed them over the edge into the bankruptcy filing. People that are addicted to using their credit cards usually have one favorite credit card that they try to keep a lower balance so they don’t lose the ability to charge on that account. All the other ones are maxed out and they’ve come to a point where they could no longer afford to live while making the minimum payments on these credit card balances. Many times, an individual will try and set aside and not list in the bankruptcy filing that special credit card that they never used or still has available credit on it. Although, in theory it all sounds good, but when the bankruptcy attorney tells their client to list all their debts, they mean all. The last thing a bankruptcy attorney wants is to be blindsided at the meeting of creditors by the bankruptcy trustee asking why this account was not disclosed. It’s embarrassing for the bankruptcy attorney and could have ramifications on how the bankruptcy filing proceeds from there.
Many people in the process of filing bankruptcy don’t realize that most creditors continuously search the bankruptcy filings than cross reference the names with their own database. When a name pops up the check for social security number and if it matches the account will be closed anyways. So someone that thinks they can be sneaky and hang on to one credit card while discharging all their other debt is foolish. Technology has made this virtually impossible for the debtor to get away with. Once you get caught failing to disclose debts on your bankruptcy petition, the bankruptcy trustee will take a much closer look at all the schedules including an individual’s assets and the bankruptcy exemptions that protect them. The bankruptcy attorney will be on the defense digging themselves out of a hole with a bankruptcy trustee.
The court wants individuals that are filing bankruptcy to be totally honest if they plan on receiving this discharge of debt. Once that trust is broken, the court will question everything else in the bankruptcy petition. It also breaks the trust of the bankruptcy attorney with their client. First of all, if the bankruptcy attorney learns about the hidden credit card at the 341 meeting, they won’t know what else their client is hiding from them. When that trust is broken, the bankruptcy attorney might even drop them as a client.
This is important for an individual filing for bankruptcy if they want to be successful. Include all the information and let the bankruptcy attorney decide whether or not it’s important or if there is a legal way around the situation. Many times there is a solution that the client would not even know about and would avoid the embarrassment of getting caught in a lie.
The author is a professional that formed FilingBankruptcyNow.Com which provides information for debtors considering a bankruptcy filing under Chapter 7 and Chapter 13 bankruptcy and helps individuals stop foreclosure and eliminate their debt by putting them in touch with a local bankruptcy attorney.
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In today’s tough economy, many Americans are forced to live on their credit cards as a way to make ends meet. This type of lifestyle with no obvious budgeting only will lead to bankruptcy. It’s only a matter of time before the balance on the credit cards get so high that it will be impossible to ever pay them off. Many Americans today try and avoid filing bankruptcy because of the fear of losing their prized credit cards. Credit if left unchecked will end up having the same kind of destruction of a wildfire to the family’s finances. When people have available credit on their credit cards, they don’t realize that they can’t afford the things they are purchasing. If they had to budget and pay cash for their purchases, they wouldn’t have the money to pay for them. Once the ball starts rolling there is no way for a person to get out of the way of the damage. At some point they will be hit with crushing debt and no other way out except to file for bankruptcy.
When an individual starts using their credit cards to buy groceries, because there’s not enough money from their paycheck, it’s probably time to go talk to a bankruptcy attorney. What happens is, because of the interest rate, the credit card debt now becomes a major part of the family’s budget. To keep those accounts open, the individual will need to at least make the minimum payment. This cycle will continue on until the card is tapped out. At this point, outside of winning the lotto, there is probably no way this individual would ever be able to pay these bills off. This is a perfect reason of why filing bankruptcy was created. When Congress voted into law they wanted to give good hard working individuals a second chance with a fresh start. Filing for bankruptcy will allow the individual to wipe out all the unsecured debt, freeing up their paycheck to be able to start budgeting and live once again.
Everyone has heard the expression Robbing Peter to pay Paul and living paycheck to paycheck are true in probably over 75% of American households. The average American household has over $20,000 in credit card debt. Considering the same average household only earns $41,000 a year, it’s not hard to see that an individual with this kind of debt is just setting themselves up for failure. That’s where Chapter 7 bankruptcy is king. Filing Chapter 7 bankruptcy will wipe out all unsecured debt and allow the debtor to start over and hopefully make better choices. After the bankruptcy is filed the automatic stay is put in place that will protect the debtor by stopping the creditors from relentless attacks signed to collect on their debt. This will give the individual a quiet time allowing them to plan for the future. A smart individual shouldn’t wait until the cards are all tapped out, they should be honest with themselves and consult a bankruptcy attorney before the creditors start their shenanigans. Living without credit is not such a bad thing, it allows for a debt-free individual to regroup and learn about living on a budget.
The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
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